Costa’s coffee shops return to profit with iced drinks and matcha on the menu
Costa’s UK and Ireland coffee shop business returned to operating profit in 2025, as store updates and a wider menu helped lift sales. The recovery matters as the chain faces strong competition and higher costs, while its owner Coca-Cola recently confirmed it had abandoned plans to sell Costa.
Costa Limited reported a £20m operating profit for the year to 31 December 2025, after losses of £13.5m in 2024, and revenue rose 5% to almost £1.3bn. It added a net 50 UK outlets last year and plans another 50 this year, while expanding iced drinks, matcha, digital ordering and store refurbishments; Costa says it is the UK’s largest café seller of matcha. Across the wider group, global sales increased 3.5% to £1.74bn and operating profit rose 30% to £101m, though coffee costs may remain high.
- Costa’s coffee shop arm returned to profit, making £20m in 2025.
- Revenue rose 5% to almost £1.3bn.
- The chain plans 50 more UK outlets this year.
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Costa is one of the UK's largest coffee shop chains, owned by Coca-Cola. The business has been under pressure from strong competition and rising operating costs.
The company returned to profit in 2025 after losses in 2024, marking a significant recovery for a chain that had faced questions about its future. Coca-Cola had previously considered selling Costa but recently decided to keep it.
Costa has responded to challenges by refreshing its shops and broadening its menu, adding more iced drinks, matcha and digital ordering options. The chain also expanded by opening 50 new shops last year.